1. Texas Foods has a loan that requires one lump sum payment at the end of 12 years in the amount of $139,000. The interest rate is 5.8 percent, compounded monthly. What amount did the firm borrow?
2. Define what is liability management.
3. Cox Corporation reported sales of $65 million, cost of revenues of $20 million and $10.8 million of net income. The company has a $12 million interest expense and its corporate tax rate is 35%. What was Cox’s depreciation and amortization expense?